India set to be one of the fastest-growing economies until 2030, according to Goldman Sachs.
According to global brokerage Goldman Sachs, India is on track to remain one of the fastest-growing economies in the world until 2030, fueled by robust GDP growth and favorable investor sentiment.
Goldman Sachs noted that the country’s earnings have stabilized in recent years, projecting “mid-teen profit growth momentum” that could continue through 2030, even as India navigates global uncertainties.
The brokerage reported that Nifty’s total earnings growth and market capitalization have both experienced an 18 percent compound annual growth rate (CAGR) over the past five years. They expect a shift in the profit pool towards investment cyclicals such as autos, real estate, chemicals, and industrials, which are anticipated to see significant profit increases. Meanwhile, consumer cyclicals are likely to experience the highest absolute growth.
In addition, Moody’s Analytics has forecasted that the Indian economy will grow at a rate of 7.1 percent this fiscal year (FY25). They have maintained a growth outlook of 6.5 percent for 2025, with a projected increase to 6.6 percent in 2026.
S&P Global Ratings has also upheld its growth forecast for India at 6.8 percent for the fiscal year 2024-25. The agency noted that GDP growth moderated in the June quarter due to high interest rates affecting urban demand, consistent with their projection of 6.8 percent for the full fiscal year. They also retained their growth forecast for FY 2025-26 at 6.9 percent.
The report mentioned that the Reserve Bank of India (RBI) views food inflation as a barrier to rate cuts. “Our outlook remains unchanged: we expect the RBI to begin cutting rates as early as October, with two rate cuts projected for this fiscal year (ending March 2025),” the report stated.
